Suppose the money supply grew at an average annual rate of 8%, velocity was constant, the nominal interest rate averaged 9%, and output grew at an average annual rate of 3%. according to the quantity theory, a. inflation averaged 8% per year and the real rate of return was 9%. b. inflation averaged 11% per year and the real rate of return was 17%. c. inflation averaged 5% per year and the real rate of return was 4%. d. inflation averaged 1% per year and the real rate of return was 6%.

Jaguar has full manufacturing costs of their s-type sedan of £22,803. they sell the s-type in the uk with a 20% margin for a price of £27,363. today these cars are available in the us for $55,000 which is the uk price multiplied by the current exchange rate of $2.01/£. jaguar has committed to keeping the us price at $55,000 for the next six months. if the uk pound appreciates against the usd to an exchange rate of $2.15/£, and jaguar has not hedged against currency changes, what is the amount the company will receive in pounds at the new exchange rate?